I discovered the source of the bug. Maybe it’s not a bug but just an unintended issue when using something the devs didn’t expect us to use.
If you simply just plug anything into the ‘world position offset’ pin in the (custom) material for the LiDAR point cloud asset, it will cause this fuzzing effect. Doesn’t matter what value you use, a simple float or the grasswind node, results are all the same. If you leave that pin untouched then this fuzzy issue doesn’t occur.
All I want is to be able to manipulate the position of these points and I’ve read the code for it and there is a section on point position specifically and yet I can’t access this at all.